Saudi Arabia voiced its ideas regarding the future of the oil production curb agreement. First, Riyadh believes that a more flexible approach to every member is needed and says it is possible for some countries to exit the agreement.
Saudi Arabia’s Minister of Energy, Industry and Mineral Resources Khalid Al-Falih said it would make sense to shift focus from production curb to reduction in existing stockpiles. According to the official, oil inventories in developed OPEC countries should shrink to a five-year average.
Comments from other members of the OPEC+ deal are awaited. For example, Russia, one of the world’s largest crude exporters, is not ready to announce its position for now. According to Russian Energy Minister Alexander Novak, it is too early to talk about Russia’s future role in this agreement; the decision on exit or membership prolongation will be taken not early than the beginning of the next year and will be based on the situation in the global crude market.
OPEC member and nonmember countries, like Russia, have cut oil production by about 1.8 million barrels per day since January 2017. Thanks to the joint efforts, the global crude glut was significantly reduced and oil prices went higher.
